Cox Lowers Full-Year Forecast to 14.4 Million Vehicles
Cox Automotive cut its full-year new vehicle sales outlook by nearly 1 million vehicles to 14.4 million, the latest forecaster to lower estimates amid persistent supply constraints. It's the second time this year Cox has lowered its sales forecast, which initially stood at 16 million vehicles. IHS Markit and LMC Automotive have also downgraded their outlooks. Automotive News reports the pullback comes as Cox predicts a 19.3 percent decline in second-quarter sales compared with the same period a year earlier. It says first-half sales will fall 17.3 percent as the industry continues to struggle with a global semiconductor shortage that has upended supply chains and sapped dealer inventory. Cox says new-vehicle supply is down roughly 280,000 vehicles compared with this time last year, and down about 1.6 million vehicles compared with 2020. Cox forecasts a June seasonally adjusted annual selling rate of 13.8 million vehicles, down 7.5 percent from a year earlier. It says June sales volume will fall 7.5 percent to 1.2 million vehicles. Click here to learn more about Cox Automotive’s Forecast.
FTC Proposes Rules for Car Dealers' Websites, F&I Offices
The Federal Trade Commission proposed banning finance and insurance coverage and physical vehicle add-ons "that provide no benefit" and requiring expanded disclosure and consent on such optional products — including a list of prices online. The agency also is considering cracking down on dealerships' advertising related to the cost of the vehicle itself. Automotive News reports the commission's June 27 notice of proposed regulations was approved by a 4-1 vote with Commissioner Christine Wilson dissenting. An accompanying news release repeatedly depicted physical additions and F&I products as "junk fees," though the four commissioners supporting regulations acknowledged in a separate statement, "Not all add-ons provide no value." FTC Chair Lina Khan and Commissioners Noah Phillips, Rebecca Slaughter and Alvaro Bedoya said the rule would be their agency's first regulation since the Dodd-Frank Act of 2010. That law continued and expanded the FTC's authority over auto dealerships. The quartet also noted the proposed rule would let the FTC seek financial redress for customers, something they said had been prohibited by the Supreme Court's 2021 AMG Capital Management LLC v. FTC decision. The agency will soon open a 60-day window for public comment on the proposal, No. P204800. Click here for the full story.
Nissan is Halting Russian Production for Six Months Due to the War
Nissan has extended its suspension of production in Russia through the first half of the business year that started April 1. Carscoops reports while speaking during Nissan’s annual general meeting, chief executive Makoto Uchida said the decision was made due to there being little prospect of the situation improving. “We believe this situation could become more serious and prolonged,” a Nissan spokesman said while quoting Uchida. Nissan first suspended production in Russia in March, shortly after the invasion of Ukraine started but it isn’t showing any signs of completely cutting ties with the country. In fact, just 2.4 per cent of Japanese companies operating in Russia have cut ties since the start of the invasion on February 24. Nissan’s alliance partner Renault has withdrawn from Russia despite once having a significant presence there through its majority ownership of AvtoVAZ. In mid-May, Nissan revealed that it had written-off its Russian business in its forecast for the next fiscal year ending March 31, 2023, taking a $499 million financial hit from its Russian and Ukrainian operations. Click here for the full story.
Porsche 718 Cayman, Boxster Production Expands to Meet Demand
It might seem like the world is falling apart and we're careening toward recession, but those things haven't stopped people from buying Porsches at a rapid clip. The automaker has seen strong demand for its vehicles in recent years, to the point that it is expanding production of the 718 to an additional factory to keep up. Autoblog reports Porsche’s main facility in Stuttgart-Zuffenhausen has its hands full building the 911 and 718, and so the automaker is unable to keep pace with 718 demand with just the one factory. To release pressure, Porsche will fall back on the multi-brand Volkswagen Group plant in Osnabrück for support. The facility previously built the Boxster and Cayman and handles production of other vehicles like the Cayenne. The automaker is clear that the move to expand production will not impact existing employees in the Stuttgart facility. At the same time, Porsche is moving aggressively toward an electrified future, and states that the 718 will be electrified by 2025. By 2030, the automaker says that more than 80 percent of its new vehicles will be fully electric. Click here for the full story.
Gas Stations, Convenience Stores Can Grow an EV Future
Major automakers and start-ups are delivering new models of battery-electric vehicles while governments set ambitious BEV targets to move away from traditional internal-combustion engines. The continued influx of BEVs means drivers will need more charging points to comfortably transition to electric. According to IHS Markit, public spaces and workplaces need an additional 600,000 charging units by 2026 to meet BEV demand. As the sector looks to transition from fossil fuels to electrification, fueling stations are considering how to change their forecourts to support OEMs’ electric-vehicle pledges and an electric-prominent future. The auto industry and fueling stations need to collaborate to increase consumer EV comfort and promote seamless EV adoption. Wards reports research from the Fuels Institute shows the availability of BEV charging is one of the U.S. market’s primary concerns. OEMs can provide the electric vehicle, but without consistent charging access, drivers will experience range anxiety, one factor affecting consumer preferences. Consumers have come to rely on the familiarity of fuel stations and convenience stores to replenish both the drivers and their vehicles, and there is no reason to think BEV drivers won’t follow the same behavior. Click here for the full story.
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